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xyz2grid21 ArcGis

I am a researcher from Romania and I have used xyz2grid21 ArcGis tool (by Min-Lang Huang) in order to convert xyz files (LIDAR data) to ASCII and ESRI grid in order to obtain a DTM. I need to know what algorithm does the XYZ2GRID tool use in order to rasterize the data? Is it using a mean or minimum value or does it interpolate somehow?

Thank you in advance for your help, Anamaria